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Sunn Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During November,
Sunn Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During November, the company budgeted for 6,100 units, but its actual level of activity was 6,050 units. The company has provided the following data concerning the formulas to be used in its budgeting:
Fixed Element per Month | Variable element per unit | ||||
Revenue | - | $ | 33.70 | ||
Direct labor | $ | 0 | $ | 5.90 | |
Direct materials | 0 | 10.90 | |||
Manufacturing overhead | 48,400 | 1.20 | |||
Selling and administrative expenses | 24,800 | 0.50 | |||
Total expenses | $ | 73,200 | $ | 18.50 | |
The manufacturing overhead in the flexible budget for November would be closest to:
Multiple Choice
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$55,511
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$55,660
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$55,720
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$56,433
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